long-term care is one of the most pressing health care problems facing the nation. Although most long-term care is provided by families, even willing caregivers find themselves considering institutionalization as caregiving demands increase. Reconciling the difficulty of providing care with the desire to keep an elder at home is a challenging task for many families. The Homecare Suite offers an innovative housing option that could meet the needs of such families. An innovation on Elder Cottage housing, the Homecare Suite is a private, fully accessible modular apartment that fits in the caregiver's attached garage. The Phase I evaluation demonstrated considerable support for the Homecare Suite from professionals, caregivers, and users. The Phase II study extends this evaluation by studying the impact of Homecare Suites on 50 families as compared to 50 families using Elder Cottages and 100 waiting-list control subjects. This study will attempt to answer the following questions. Are Homecare Suites: (1) effective in reducing the likelihood of nursing facility placement; (2) cost effective relative to other long-germ care options; and (3) effective long-term care options as assessed by their impact on psychological outcomes?